Options trading reddit. All of them have pros and cons.

Options trading reddit Good luck! 818 votes, 152 comments. Do not trade too many stocks at the same time Know your charges very well — The taxes, the brokerage, etc Welcome to FXGears. The name of the video on youtube: Stock Options Trading 101 [The ULTIMATE Beginner's Guide] Channels: projectfinance, Sky View Trading, TheChartGuus, and Option Alpha - are all very good. $180k per year trading options is a lot of work. . CFDs vs. OK. Here… This option gives the holder the right to buy 100 shares of Tesla at $900, on or before March 18, 2021. I've also used Schwab, Fidelity, and TOS for options. " That sentence - stop right there OP. If you buy the option now you can buy the toy for $120. ) financial situation, and investment objective. Charting and indicators are limited, however. Welcome to FXGears. If you're a beginner, however, maybe swing/day trading is da wea before you jump into options? It's a screener. Options trading is particularly risky for beginners due to its complexity and the high risk of loss. I grew up with Tastyworks and watching Tasty Trade. Selling covered calls on shares is probably one of the lowest risk ways to add return to a portfolio of buy and hold for years. Slightly longer version follows. If Tasty comes well then we can compare but right now its not an option. Sofi actually started having options trading available but it’s only level 2 (buy and sell options, no strategies) I was looking for a new platform that had instant buying power (that wasn’t robinhood) and I came across Sofi just cause so many people talked about it. However, for the most part, on a "day-trader" basis, and particularly for trading options (like MMs would constantly) that is not necessary. If you're trading plain vanilla strategies, (i. What about the other end of the transaction? If you buy an option, someone has to sell it to you. With normal options you’re buying 1 option for 100 shares. Common mistakes and useful advice for new options traders • Five mistakes to avoid when trading options (Options Playbook) • Top 10 Mistakes Beginner Option Traders Make (Ally Bank) • One year into options trading: lessons learned (whitethunder9) • Here's some cold hard words from a professional trader (magik_moose) r/options_trading: Welcome to r/Options_Trading! This is a subreddit for all traders to discuss, ask questions, and share trade ideas related to… Options can be used for Day Trading, Swing Trading and even long-term Investments. People get drawn to options like moths to a flame because of the potential for giant returns. Sit on the sidelines and watch. I'm hoping to connect with someone within the Reddit community who is genuinely passionate about this field and eager to learn and grow. 0 for Reddit over the recent three months. If you're serious about trading options go with ibkr. Anxiety/Nervousness, is a factor when you aren't capitalized properly or are taking on greater than capital allows risk. This community was founded to teach others about realistic and responsible options trading. There are very few rare instances when the movement in a stock is obvious. Options approval decisions are based on your trading experience (including experience trading stocks/ETFs, mutual funds, bonds, etc. Just be patient and do your homework and you'll get there. For those experienced in options trading, my question is: how do I calculate the total amount I will receive from the buyer, minus the fees, when selling one put option contract with a $1 premium on IBKR, assuming 100 shares equals $100?. So naturally the price of options on those stocks are relatively high, and that increased price is measured by IV. A place for high quality community conversation and learning surrounding exchange traded financial options, and associated markets. Supporting documentation for any claims, if applicable, will be furnished upon request. If you want to trade options, stick to US markets. The Tastyworks mobile and desktop platforms are great for options. Every tool has its nuances, so personal experience often speaks volumes. I was pretty annoyed by that. It is often best known for its trader workstation, API's, and low margins. Context and effort in your post is required to communicate well. "Tldr; Its not worth it. Smart boomers are using options also. I started trading options with actual money May of 2017. Here are a few more examples. I use IG for simple option strats. I have been options trading for about a year and so far have made more profit than losses. Is it really live or is there a 20 second to minute delay. This happens with VIX a lot. If you're someone who sells options and lets them expire, another platform that charges you 60 cents per leg would be cheaper in the long run, but I'd still choose tasty due to the analysis tab functionality. Hence, adequate knowledge and experience are crucial before delving into options trading. Most who make an income from trading do so by being net sellers. Format: SYMBOL , trade price (debit I paid to open the position), date/time opened As you get more experience, and develop an even better trading plan, you may be able to bring in a higher percentage return. Options/CFD trading is a high-risk activity and most retail traders lose money. I'm a long trader, and use my options as future entry points. Welcome I use available strategy from my options trading tool box, for a spread trade, based on my trade plan Risk Buying power reduction . 2) Trading options is trading options. There are two types of options that you can trade, which are call options and put options. 65 cents a option. For me it's fine because i don't deal with frequent trades and do more LEAPS and the occasional FD, but the UI sucks and the numbers are slow. It has morphed into a safe haven for those that desire to learn investing free of nonsense, yolos, lottos, drama and all/any other irresponsible behavior that is inherent in most online communities. My strategy involves selling only one contract at a time, focusing on options from the top 10 NASDAQ stocks. I learned option basics from tasty trade but I couldn't find any good material to get from options rookie to option veteran. I have been trading options for several years and started with futures over the past year. Call options, or just "calls," allow the holder to buy at the pre-determined price and are the options equivalent to simply buying or longing the underlying stock. So sure I can do that with options. CFDs I believe is 1 option to 10 shares It only offers options on indices, not shares, and the expirations on offer are very limited. Starting small and scaling up as you review and revise your plan is a good idea. , I think MM would be a better "role-model" for most people than those other firms. I have a lot to learn, but in the meantime I don’t make any trades that expose me to significant losses. For company or industry analysis, you look at the underlying first and foremost. e. On that note, I'm aiming this at people who read and understood the first two - which were brief but dense. If you buy, for example, a covered call option you can only lose the contract premium. 01 (£5. The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies 11. Because different options trading strategies involve varying degrees of risk, approval requirements are more rigorous for higher options levels approval. So Gambling. It's an excellent resource for getting to grips with the quantitative aspects of options trading. What is trading options? I trade options to acquire a position or to reduce a position. It's $1 round trip which you pay when you open the trade. Many "live" traders are nearly live, not live, and dump on their subscribers. Options trading entails significant risk and is not appropriate for all investors. Options/Trading 102. 09 (£75) at Christmas if it becomes cool or if it is uncool you do not use the option and your cost to date is $8. The liquidity is garbage and not worth trading IMO. You cannot trade the VIX itself, but you can trade /VX futures, which is what the VIX options are priced off of. Long call spreads and long put spreads are debit spreads because the long options are worth more than the short option that’s sold against it to reduce the cost basis. Hello! As the title suggests, I’m looking to see what you all suggest for options trading in Canada since a lot of the usual suggestions are best suited for American investors and it is really difficult for a Canadian to sign up. Interested in your thoughts and criticisms. I would say the desktop platform is not suited for beginners, but the mobile platform is very user-friendly. 5 on the bid, sorted by highest yearly return and a strike less than 7 to see what I might want to sell puts on. With calls the price can only drop to $0 giving a limit to yo Get the Reddit app Scan this QR code to download the app now Blew up my account less than 2 weeks after getting back into trading options after having about an 80 From historical option price (I only trade AMD options so after many sessions I kinda get the hang of its flow - or so I thought), I deduce that if I start buying when either puts/calls reach 50% of its session high, then averaging down anytime the option drop a further 10%, my risks would be minimized and the success rate would be very high. Certain complex options strategies carry additional risk. S. Risk Management: Skilled options traders employ various risk management strategies to minimize potential losses and protect their capital. I recently started trading options because I can limit the amount of cash I’m investing. Options let me buy and sell stock that is otherwise priced way out of my league. I see people comparing future dated VIX options with the current VIX price, but that is not how VIX options actually work. The problem is what happens if we get another 2008 I hear this argument all the time, particularly with FAANG and SPY. American (styled) Options means the buyer(s) can exercise the contract ANY TIME they want. just going long a call or put) then they're all the same because the marketmaker who's buying your brokerage firm's order flow has to match the national best bid/best offer. Thanks for your input! If you trade like an algo, for example if you just scalp, use fixed stop/profit target, or trade breakouts, you're going to have a bad time. I've been actively trading in both the Canadian and US markets using WS, and I'm now considering venturing into options trading. 50 (position doesn't make or lose money if the stock goes up or down). Hello, I’m a new to the Options Trading and what’s wild is I got into Reddit in 2020 (my account started) and I wanted to Primarily focused on trading, i heard and seen the success - I wanted to get into it and bring my family generational wealth and so on…but with everything going on in my life I stuck with what I only knew, going to college and playing football. You would have to consider what you are doing with the options. You know boomers that own 100s of shares of Aapl, Msft, Axp, Amzn etc. Also I don't really like the way that TastyTrade's trade style is. I trade much more conservative than average guy or at least I think. I keep notes as I trade so I thought I'd share some of the lessons I learned along the way, going from noob to an intermediate level. Options can be worth it, but it is a huge learning curve. If you're considering an AI trading tool, I'd suggest testing it out firsthand, maybe through a trial period if offered. Trading Options at Expiration by Augen and Trading Options on Corporate Earnings News by Shon and Zhou are both a bit dated but good to read through once. Some of the best scalpers over the years have given up scalping to actually hold their positions for as long as an hour. The Only Covered Call Strategy is one of my personal favorites and highlights the risk-hedge aspect of options trading. The latter basically gives you the insight that price moves correspond with earnings news less than half the time (eg. I’m pretty good at being disciplined in my options trading but the hard part is always trying to choose which stock to trade and I’m which direction. It operates the largest electronic trading platform in the U. more likely to drop after good earnings news). With markets closed today, I figured I'd sit down and take my time to share some of my tips for (options) day-traders. Buying an uncovered put option for example has unlimited risk. g. When placing an order, the ability to synchronize the options chain with the chart of the underlying and vise versa: so when you choose a symbol you see the current chart; when you type in a symbol you bring up the chart and the options chain at the same time. Trading Options Greeks by Dan Passarelli was a book I found to be very helpful jn understanding how the greeks work and affect options pricing. 50 cents with no cap I’m gonna move to robinhood any day now for options. he's also got a podcasts about selling ~45DTE SPY / SPX puts regularly and rotating the most profitable off after a certain amount of I trade options professionally and I personally wouldn’t consider trading options independently without having at least $250-500k to do so. Mainly I've attempted this with 0dte SPY options, but I have also traded in a few highly liquid tickers also, but always as low a dte as I can get. This is a financial options trading subreddit. com's Reddit Forex Trading Community! Here you can converse about trading ideas, strategies, trading psychology, and nearly everything in between! ---- We also have one of the largest forex chatrooms online! ---- /r/Forex is the official subreddit of FXGears. With spreadbetting you can do 1 option for one share. You can choose your leverage. The Real Housewives of Atlanta; The Bachelor; Sister Wives; 90 Day Fiance; Wife Swap; The Amazing Race Australia; Married at First Sight; The Real Housewives of Dallas Thus, if the extent of your understanding is, "Use a Call when you think it is going up and a Put when you think it will go down" you should probably skip the rest of this and learn the mechanics of Option Trading first. If you trade index or commodity options (or the contracts themselves) then 60% of any gain is treated as long-term and taxed at the lower long-term rates. When you do, check out the following resources R/options - pretty normal option trading subreddit Let's Talk About: Exchange Traded Financial Options -- Options Fundamentals -- The Greeks -- Strategies -- Current Plays and Ideas -- Q&A -- **New Traders**: See the Options Questions Safe Haven weekly thread Thank you for the thoughtful response. And if the company ever goes bankrupt and the stock goes to 0, then you lose it all. 50 for opening a contract, and closing is free. I got bonds too. Best wishes in your trading journey! Options are still costly. There are too many factors without knowing what you want to do with the options. We are a communal resource for teaching all aspects of investing and personal financial growth. Patient: “Doctor, it hurts when I raise my arm. I currently invest using Wealthsimple, but they don’t offer options trading. controlling emotions is the hard part, because when you're trading stocks losses are generally small, but with options the emotions are raised by 10x because when you do lose money it goes extremely quickly, i've lost half my portfolio in one day before and rocketed What I have seen is probably RH. If we're focusing on option trading as a whole, instead of trading commodities etc. With volatile stocks, option buyers will pay more because there’s a better chance an option can go deep(er) ITM, and option sellers will want more premium for the risk. Options/Trading 103. Think about it for a minute: the market makers are making enough off of executing your orders that they pay Robinhood a sizable chunk just to receive them. My research into options seems to me to be a pretty good blend of things I like about swing-trading and long holds. I do use TOS for charting and intraday trading stocks. I have yet to sell-on an option I've bought - I've exercised everything. you can easily buy hundreds of contracts to open and close a position I called TD the other day and best they offered was . This is not an insult to Australia; other markets like Canada and Japan also have poor liquidity. Volume & Open Oct 13, 2023 · Whether you’re a futures trader or an options aficionado, r/SwingTrading caters to traders of all stripes, offering a platform to dissect market trends, explore high-potential trading setups, and delve into the nitty-gritty of risk management techniques. Options price data will sometime stop streaming for a particular ticker and I have to restart or click to another menu and back to trigger it. 09 (£80) or have spent $8. com, a trading forum run by professional traders. "My experience trading options" is not the same as "my experience gambling on options". Step 1 - Identify an optionable stock you'd like to hold long-term and purchase 100 shares (100 is minimum required to "sell" options contracts). For those who do not have a solid trading plan and are just winging it then it may be gambling. I have working on a similar strategy trading ES futures and options. As a long trader, if there's a strategy that works for me, where I can also limit my tax liability, then I may go for it. Id say no, option trading is very different from regular investing or short term trading. Not having a position is a position. But I only need to generate $18k to live life as I want. Many people blow their accounts trading options. Covered Calls for Beginners: A Risk-Free Way to Collect Rental Income Every Single Month on Stocks You Already Own 12. Long term S&p 500 puts for a simple hedge. Options are great for no PDT, just higher risk so just be disciplined disciplined disciplined with your homework. Option buying or selling isn’t inherently profitable - this is one of the largest misconceptions about options. I have dividend stocks and money in Money Markets. "Understanding Options" by Michael Interactive Brokers is the superior brokerage by far. The UI allows for efficient entry, exit, and rolling of positions. Sometimes I use swing trade bot to look at signals that can help but they have so many different signals to use I don’t know which one is the best. So it’s not buying options that’s hurting you, it’s trading a directional strategy and not being accurate at it. But, for a knowledgable, experienced, and skilled trader with a solid trading plan, it is most certainly not gambling! My point here is that there is no way to remove the gambling aspect from ER trades which you can do from non-ER trades. The risk is infinite when you are writing contracts or buying uncovered contracts. If youre doing stuff with both margin and tfsa accounts, Questrade is worth looking at though because of their margin pow Welcome to FXGears. Most of the time, do not take that trade. 0 to $200. After seeing many questions and comments on trading VIX options, I thought it would make sense to clarify things. It does NOT mean the option originate/sold/from Europe or America (A lot of people have this confusion because of the names of the option style). PDT is a bitch under 25k but you can a still execute 3 day trades every rolling 7 day period, you can swing trade and you have options trading while you build your account. rather than just trading directionally. I have casually traded stocks for 5 years, recently delving further into swing-trading and having modest success doing so. The company brokers stocks, options, futures, EFPs, futures options, forex, bonds, and funds. You probably don't need to worry if your options income is small. Further, option price is influenced by three things, not just one. It's easy to use and good UI for this purpose but most conventional option strats (involving selling) will not work. I have other posts that deal with Option Strategies, but this one is primarily for those that wanted to get a base understanding of the instrument from the beginning. Stocks + Bonds + Dividends + Interest + Options Trade styles: ZTRADEZ offers a variety of trade styles to choose from, including options day trades, options swing trades, penny stock trades, equity swings, debit spreads, credit spreads, the wheel strategy, futures and forex, and high probability strategies. But that is still extremely costly when playing spreads. pretty much all the big ones are . Before trading learn exactly how much you stand to lose, and if it's too much consider ways you can protect your position. 10. Before trading options, please read the Characteristics and Risks of Standardized Options. Some options traders can reach 100%, but this is rare. I have come to the conclusion that options are going to be my primary and futures are used in specific directional and high probability scenarios. The most important thing to learn is risk management. by number of daily average revenue trades. Or go full time trading 9/5. True, I think the real money losing part about options is not the knowledge, understanding option fundamentals is the easy part. I’m retiring soon from my current job and Im pondering with the idea of getting an easier job and continue swing trade. How to Trade Options: Day Trading Strategies 15. Positional Option Trading: An Advanced Guide 13. Wait till you find the right trade, and be aggressive about it Keep taking breaks from trading. "trading option greeks. Oct 12, 2024 · I've spent the last ~6 months day trading 0-4dte options, basically buying calls or puts and attempting to quickly scalp out some profit. " Welcome to FXGears. To be a good options trader, you need to be a good stock trader. For options trading, Tastytrade has the best trading platform and fees in the market. Even Europe isn't great. etc ) Underlines' Option Greeks are aligned? Delta neutral: about 0. All of them have pros and cons. High - Highest price paid during the trading day for the option Low - Lowest price paid during the trading day for the option Volume - number of contracts traded during the trading day Open Interest - number of total contracts not settled Bid-Ask Spread is the different between the Bid and Ask, in this case $. Options were originally invented to hedge risk. 01 (£5) avoiding getting an uncool toy. Options So getting started, options and contracts for difference (CFDs) are both financial derivatives - they derive their values from an underlying security e. Starting off by selling options and learning to sell cash secured puts and covered calls. And the problem with joining groups, as someone who joined many groups before I got good at trading on my own, is that you are basically taking other ppls plays without knowing what they’re trading plan is "think like an option trader" it explains how to think through the logic of a trade, assess the situation of the stock, its iv, skew an greeks and how to analyze an trade in the context of the greeks, time, iv, moneyness and more. In a debit spread, the long option costs more (premium to buy) than the short option (premium received from selling) therefore, the net premium is a debit. i'm guessing you might be familiar but if not, and for others hearing about this kind of strat for the first time check out david sun (he's been on tastytrade and active in the tasty trade options group on FB). the smart and rich ones have owned them for decades and don't want to sell them because of their crazy low cost Welcome to FXGears. Reply reply It is a guide on how to start options trading from the UK. A lot of commodity traders use TA. You seem to think - like lots of newbies - that trading options is like having an ATM in your backyard whereby you can withdraw free money as and when needed. Our tracking of public options records at Benzinga unveiled this CBOE OPTION SCHOOL - FREE TASTY TRADE OPTION SCHOOL - FREE OPTION ALPHA VIDEOS - FREE PERUSE VIDEOS/PRESENTATIONS @ OIC/OCC - FREE Re options and value theme, there is one book that tries to cover both angles - INTELLIGENT OPTION INVESTOR . Yes stock go up, option go up, stock go down option go down but its more complex than that. The main advantage I can think of is that you can trade on international exchanges with little fuss, if that's important to you. Honestly i've been in so many groups since 2016 and got myself confused with people messing around but i was looking for serious groups of traders , here is the perfect place i've been here for years learned alot not just trading options and futures but also economics of market understanding different trading strategies if you want to learn and community this is the place With ig selling options is pointless because you don't receive the premium at all. Understanding the "Greeks" is crucial for any options trader, and Passarelli's book provides a clear guide to how these factors—delta, gamma, theta, vega, and rho—affect options pricing and trading strategies. 67 votes, 14 comments. I usually look for up to 99 dte, otm, put, with at least . I've traded options with everyone from Schwab to Robinhood to Interactive Brokers to Thinkorswim. Jan 6, 2025 · Deep-pocketed investors have adopted a bullish approach towards Reddit RDDT, and it's something market players shouldn't ignore. You’re so limited in what you can do without a decent amount of capital, and you really can’t isolate volatility trading without the ability to delta hedge your position (so you need more $$ for Hello! 😊 I'm on the lookout for recommendations on where to post a job listing for a part-time assistant to assist with market research and trade execution, particularly in the realm of options trading. This really should be a 200 level since it involves some numbers (although you won't yet need a calculator), but I'll just keep the numbering sequential for OCD sake. 2 days ago · Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $95. While Options have many purposes, the primary purpose of using Options to Day Trade is - leverage. Don't trade thinking only about the case where things go in your favor, and especially don't consider only a subset of downsides that you're comfortable with. But if you have been consistently successful at trading options for a living, a downturn shouldn’t hurt too much. One drawback is that it lacks price alerts. If you want to trade options seriously then set up your business, get the deep thorough education and training necessary (it is all available for free online), become an expert on both options and a top flight trading platform, then develop a trading plan that proves over time it can make money. European (Styled) Options means you CAN NOT EXERCISE EARLY. Without a solid understanding of how options work, beginners can easily lose their entire investment or be exposed to unlimited risk. Ngl it reminds me of if fidelity and robinhood had a baby, you’d have sofi. So I suggest you spend some time trading stocks before you graduate to options. ” Only regarding writing uncovered contracts. Symmetrically, since you get to choose whether you want to exercise the option, the seller must fulfill the demands of the buyer. Transparency in sharing trade perspectives and outcomes is crucial in this realm. Trading 0 DTE options is a fun gamble. While chance plays a role in both gambling and trading, options traders have the ability to research and evaluate information that can potentially increase their chances of success. 19. Lets you screen for options you want to open positions on. " Buttons will sometimes stop working. I do options trading on it because it's the only account I have available that allows options trading. I'm also not trying to time my clicks to maximize returns so if you are maybe it's not the best option. But if you’re invested in options, the most you can lose is the cost of the option you paid (there are plays which could theoretically cause infinite gains/losses, but for the sake of my point we’ll keep things simple). If youre buying options, you’re likely trading directionally, and not doing well at it. It is the best way to start. Only CLDR was opened such that exercise would make me lose money. "I have 10k cash and want to earn $50 per trading day. MANAGEMENT DIFFERENCE If you buy options, market makers can see your trade, if you buy options on crypto - something market makers own 90% of, then you might as well throw darts and hope for the best. He also goes over example trades and how they could play out. Option fees are $1. Probably people think options are gambling, check out Delta 1. Do not trade all the time. stock, indices, currency, commodities. Understanding Options 14. true. These are basics of Option Trading. However, I recently came across some comments on Reddit suggesting that WS may not be the suitable platform for options trading due to concerns about stability and etc Thanks for the in depth input. not a bad book at all, is additive to the discussion and not overly academic. ) You now have either a cool toy for $128. I'm moreso reevaluating my trading strategy/style with tax liability in mind. In fact, Robinhood makes nearly double from option trading as it does from equity trading on the site, despite options being a much smaller proportion of the overall activity of their customers. And if your options income is big compared to your salary you should pay quarterly estimates to the IRS to avoid penalties. Let's Talk About: Exchange Traded Financial Options -- Options Fundamentals -- The Greeks -- Strategies -- Current Plays and Ideas -- Q&A -- **New Traders**: See the Options Questions Safe Haven weekly thread With a stock, you’re paying full price per share. xvnlkd smpg xdpj bkyngn megcn lxpz ollp pzy ttwm ttsq